Solar Subsidy for EV Charging Stations: Electric mobility is transforming India’s transportation landscape — and solar energy is powering that transformation. What many people don’t know is that the Indian government is quietly offering generous subsidies and incentives for setting up solar-powered EV charging stations, both for commercial developers and private users.
The idea is simple yet revolutionary: instead of drawing electricity from fossil fuel-heavy grids, EV chargers powered by rooftop solar panels provide clean, low-cost energy for vehicles. This not only cuts carbon emissions but also reduces long-term operational costs by up to 70%.
In 2025, under the combined framework of MNRE (Ministry of New and Renewable Energy), FAME-II, and the PM-eDrive Scheme, India has launched various financial and policy-level support programs to encourage Distributed Renewable Energy (DRE)–powered EV charging infrastructure. This article will explain how the scheme works, who’s eligible, how to apply, and why it’s a “hidden” opportunity that most businesses and individuals are overlooking.
The Need for Solar-Powered EV Charging
1. High Grid Costs
A typical 60kW DC fast charger for EVs consumes roughly 1,000 units of electricity per day, costing owners over ₹12–15 lakh annually. With solar integration, that cost can drop to one-third.
2. Renewable Energy Mandates
The government’s National Electric Mobility Mission Plan (NEMMP) and Green Energy Open Access Rules (2022) require higher renewable penetration in charging infrastructure.
3. Decentralized Energy Demand
Many rural or semi-urban EV charging locations face unstable grids, where solar-plus-storage systems ensure round-the-clock power availability.
Read Also: Floating Solar Forests: The Next Step in Offshore Renewable Energy
The Hidden Advantage: Solar Subsidy Mechanism
The solar subsidy for EV charging doesn’t come under one single program — instead, it’s distributed across multiple MNRE and EV policies, which together form a layered incentive system.
Here’s how the hidden subsidy architecture works:
1. Under MNRE’s National Solar Mission
- EV chargers powered by rooftop solar panels (up to 500 kW) are eligible for a capital subsidy under the Grid-Connected Rooftop Solar Programme Phase-II.
- Central Financial Assistance (CFA) up to 40% of installation cost for 3 kW and 20% for higher capacities (up to 10 kW).
- Public or commercial EV charging operators can avail CFA for their solar setup, reducing expenditure on panels and inverters.
2. Under PM-eDrive Scheme 2025
Announced in September 2025, this framework specifically targets public EV stations on government or institutional land.
- 100% subsidy on solar rooftop installations for government premises such as offices, hospitals, and educational campuses hosting EV charging hubs.
- 50% subsidy on solar parking lot installations for private operators who tie charging loads directly to renewable systems.
- Preference to solar-battery hybrid models for 24/7 operation.
3. Under FAME-II and FAME-III (Draft)
- EV charging stations powered by renewable energy get prioritized funding.
- Operators can receive up to ₹10 lakh per charging port (fast chargers), plus renewable integration grants via MNRE.
- GST relaxation at 5% for both EV chargers and renewable components (solar modules, inverters).
4. Under PM-KUSUM Rural Energy Integration
For installations in rural or semi-urban sites, solar microgrids sanctioned under PM-KUSUM Component-C can be linked to farm-based or public EV charging points.
- Farmers and cooperatives get up to 60% subsidy on solar setup cost.
- Serves as both an income source (selling excess power) and a charging service for rural electric vehicles.
Financial Benefits at a Glance
| Scheme | Sector | Solar Subsidy | Additional Incentives | Administered By |
| PM-eDrive (2025) | Govt/Public Spaces | 100% rooftop subsidy | Free grid connection; GST cut | MoP, MNRE |
| MNRE Rooftop Solar (Phase II) | Public/Private Chargers | 40% ≤3kW, 20% for >3–10kW | CFA via DBT | MNRE |
| FAME-II | Commercial Charging Hubs | ₹10 lakh/fast port + solar cost aid | Corporate tax rebate (100% depreciation) | DHI |
| PM-KUSUM | Rural Cooperative EV Stations | 60% capex subsidy | PPA sales of surplus solar | MNRE, DISCOM |
| State EV Policies | MSMEs, Institutions | 15–25% on solar hybrid CAPEX | Free land/concessionary tariffs | Respective state nodal agency |
How the Solar Subsidy for EV Chargers Works
Step 1: Site Identification
Select an EV charging site — residential complex, mall, fuel station, or highway corridor — with adequate unshaded area for solar setup.
Step 2: Capacity Mapping
Estimate the energy load based on daily EV traffic. Example:
- 1 four-wheeler fast charger needs ~60 kWh/day.
- 10 chargers need 600–700 kWh/day ⇒ 500–600 sq. m. solar rooftop area (~100 kW plant).
Step 3: Application via MNRE’s National Solar Portal
Register your location and EV charging type on the Rooftop Solar National Portal. Ensure application under “Commercial Use (EV Infrastructure)” category.
Step 4: Approval & DISCOM Inspection
Local DISCOM verifies feasibility and grid safety compliance. For systems under 500 kW, approval normally takes 10–15 working days.
Step 5: Installation & Inspection
After MNRE empanelled vendor installation, submit completion certificate. Uploaded documents include energy meters, charger models, and solar compliance data.
Step 6: Subsidy Disbursement
Post-inspection, MNRE directly transfers subsidy to the applicant’s registered account via Direct Benefit Transfer (DBT) — usually within 30–45 days.
Why It’s Called the “Hidden” Scheme
Most entrepreneurs and residential users are unaware that solar EV chargers automatically qualify for multiple subsidies because there’s no standalone “EV charger solar subsidy” policy. Instead, these incentives are bundled under:
- Rooftop Solar subsidies (MNRE) for infrastructure energy generation.
- EV infrastructure support (FAME-II / PM-eDrive) for equipment installation.
By integrating both, investors can offset up to 65% of total setup costs.
For instance:
- A 50 kW EV-plug solar station costing ₹40 lakh can qualify for ₹25–₹27 lakh worth of total support through multiple schemes (20–40% CFA + FAME-II + GST reductions).
Real-World Examples
1. Gurugram’s 1.2 MW Solar-EV Charging Microgrid
In August 2024, BluSmart Mobility, in partnership with HAREDA, launched India’s first large-scale solar-powered EV charging microgrid.
- Capacity: 1.2 MW of solar generation powering 150 fast chargers.
- Serves: 2,000 EVs daily.
- Outcome: Reduced grid draw by 60% and annual CO₂ cuts of 1,800 tonnes.
2. Pune and Hyderabad’s Solar-ESS Integration
Companies like Exicom and ChargeZone installed solar + lithium-based storage systems, enabling 100% renewable energy charging even during grid outages.
- The MNRE provided 60% CFA on storage systems as part of demonstration projects.
- Result: 95% energy efficiency; 50% reduction in grid dependency.
3. Uttar Pradesh’s Rural EV Solar Points
Under PM-KUSUM’s rural expansion, pilot projects near Lucknow integrated solar irrigation pumps and EV chargers at farm cooperatives.
- Installation cost: ₹12 lakh.
- Subsidy received: ₹7.2 lakh.
- Daily income from charging: ₹2,000–₹3,500.
Tax and Financing Advantages
- 100% Depreciation under Income Tax Act Section 32: For renewable-powered charging infrastructure in the first year.
- GST Reduction: EV chargers and solar components taxed at 5%.
- Priority Lending: RBI has categorized EV infrastructure and solar microgrids under Priority Sector Lending (PSL), providing loans up to ₹10 crore at low interest.
- Carbon Credits: Integrating solar allows operators to earn carbon or green credits tradable through India’s new Green Credit Portal.
State-Level Solar EV Subsidy Highlights
| State | Nodal Agency | Incentive Structure | Special Provisions |
| Delhi | DERC, IPGCL | 25% subsidy on solar EV parking lots; free license for 10 years | EV-ready building mandates |
| Maharashtra | MEDA | 30% solar system subsidy under MSEDCL green initiatives | Integration with Smart City hubs |
| Gujarat | GEDA | 40% rooftop subsidy for solar-charged stations | Additional interest subsidy for MSMEs |
| Tamil Nadu | TEDA | 25% capex reimbursement for hybrid (solar-battery) chargers | Fast-track industrial EV zone applications |
| Kerala | ANERT | CFA under Let’s Go Green Kerala Plan | Grid-time charging incentives |
Why Solar Makes EV Charging Stations Profitable
Reduced Operating Costs
- Solarized EV charging stations cut energy costs from ₹10–12/unit to ₹3–4/unit.
- Annual savings for a 100 kW setup: ₹9–10 lakh.
Fast ROI
- Break-even time: 3–3.5 years (vs. 6–7 years for grid-only stations).
Renewable Credits
Operators can sell excess energy to the grid or claim GCP rewards worth several thousand rupees annually for emission reduction.
Self-Sustainability
Hybrid setups with battery storage allow uninterrupted service even during power outages or grid rationing.
How to Apply
Centralized Route
- Apply under MNRE Rooftop Solar Portal:
- pmsuryaghar.gov.in
- for solar CFA.
- Apply under BEE or MoP portals for PM-eDrive EV infrastructure licenses.
- Connect through state nodal agencies (GEDA, HAREDA, MEDA) for regional grants.
Required Documents
- Business or property ownership proof.
- Technical feasibility report.
- DISCOM NOC (No Objection Certificate).
- Layout plan showing solar integration.
Processing Timeline
- Preliminary approval: 7–15 working days.
- Installation completion & inspection: 30–60 days.
- Subsidy disbursal: within 45 days of inspection.
Challenges and Future Outlook
1. Initial Capital Barriers
Even with subsidies, upfront investment (especially for battery storage) remains high.
Solution: Revised 2025 Green Bonds program enabling individuals to invest in EV-solar clusters.
2. Coordination Gaps
Policies spread across different ministries often confuse applicants.
Solution: The central government is working toward a Unified EV + Solar Application Portal by 2026.
3. Need for Smart Grid Integration
Distributed renewable systems need synchronized regulation. Smart meters and AI load management solutions are being rolled out under RDSS (Revamped Distribution Sector Scheme).
4. Awareness Shortfall
Few installers know that dual-subsidy eligibility exists. MNRE, in collaboration with NITI Aayog, plans a Solar4Charge mass awareness campaign across 50 cities.
Read Also: Transparent Solar Glass: How India’s Skyscrapers Will Generate Power by 2025
FAQs
1. Is there a dedicated government solar subsidy for EV charging stations?
There’s no single dedicated scheme yet; however, EV charging infrastructure benefits from multiple programs like MNRE Rooftop CFA, PM-eDrive, and FAME-II. Together, they cover up to 60–70% of setup costs.
2. What size of solar system should an EV station have?
A minimum of 25–30 kW for slow chargers and 100 kW+ for high-traffic fast chargers.
3. Can I claim both PM Surya Ghar subsidy and EV incentives together?
Yes. Residential or institutional charging setups can combine both under their respective portals with proper documentation.
4. Do these subsidies apply to home EV chargers?
Yes, residential solar rooftops paired with Level 1/2 home chargers qualify for standard MNRE subsidies.
5. Are solar EV stations eligible for carbon or green credits?
Yes. Emission savings can be claimed through India’s Green Credit Portal for carbon credit generation.
Conclusion
India’s mobility revolution doesn’t stop at electric vehicles—it extends to how those vehicles are powered. Solar-powered EV charging stations form the backbone of sustainable transport. Yet, most people remain unaware that layered government subsidies can slash installation costs by more than half.
By leveraging programs under MNRE, FAME-II, PM-eDrive, and state EV policies, entrepreneurs and homeowners can transform empty parking lots or rooftops into profitable microgrid charging hubs.
This hidden scheme shows that sustainability doesn’t just help the planet — it can also power your business and income.
As India drives towards net-zero by 2070, every solar-backed charger is not just fuelling vehicles — it’s electrifying the future.